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HMV lowers full-year profits forecast to £30m

Retailer issues another profit warning ahead of financial year results

Entertainment retailer HMV has again lowered expectations for its full year profits, down to £30 million.

For the period to March 1, HMV told investors that trading remained "difficult" in its fifth profit warning since last September.

In January the retailer said it expected to miss profit targets of between £46-£60 million as it continues to struggle to reduce £130 million of debt. HMV has now struck an agreement to push back tests over its banking covenants.

"While negotiations regarding amended facilities continue, the Group is pleased to report that its lenders have agreed to move the measurement period for all relevant financial covenant tests from the 12 months ending 30 April 2011 to the 12 months ending 2 July 2011. The Group's banking facilities remain fully available, the Group's lenders continue to be supportive and the Group is maintaining a regular and constructive dialogue with them."

The company is in the process of closing 60 stores with CEO Simon Fox stating that "the pace of change in the markets in which we operate underlines the urgency with which we must continue to transform this business."

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Matt Martin avatar
Matt Martin: Matt Martin joined GamesIndustry in 2006 and was made editor of the site in 2008. With over ten years experience in journalism, he has written for multiple trade, consumer, contract and business-to-business publications in the games, retail and technology sectors.
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